The newest round of negotiations between the Big Three automakers and the United Auto Workers will focus on narrowing the gap between veteran workers and "second-tier" workers hired after 2011, Reuters is reporting.
Talks between the UAW, which represents around 138,000 workers, and Ford, Fiat Chrysler Automobiles and General Motors will begin Monday. The UAW's contract with GM ends Sept. 14.
Union President Dennis Williams said he wanted to focus on narrowing the gap between veteran workers, who make on average $28 an hour, and workers hired post-recession, who make on average $16 to $19 an hour, according to the story.
The raises would be significant for more than 39,000 workers who were hired after the recession on the "second-tier" system. More than 40 percent of FCA's union workforce was hired at second-tier rates of $15.78 to $19.28 per hour, compared to 28 and 20 percent for Ford and GM respectively.
Falling labor costs have helped the Big Three stay competitive with other automakers, Sean McAlinden, chief economist at the Center for Automotive Research told Reuters. However, rising profits and sales have prompted Williams to call for the automakers' to share profits with workers.
In an interview in February, Williams told Reuters that the union's workers need the automakers to remain competitive in the long-term for his membership.
"We're … mature organizations that have been through a hell of a lot together to survive," Williams said. "None of us want to blow it."
On Thursday, Ford announced it was ending production of the Focus and C-Max at its Wayne, Michigan plant by 2018.
The post Union Talks Set to Start on Monday, Will Focus on Raises appeared first on The Truth About Cars.
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